A disability pension is for those who are assessed as having 0 - 25% capacity for activity in the labour market according to an integrated expert assessment. The assessment is permanent.

The disability pension is income-related. Amounts and free income limits can be seen here.

A partial disability pension is for those who are assessed as having 26 - 50% capacity for activity in the labour market according to an integrated expert assessment. A partial disability pension is permanent.

A partial disability pension is intended to provide financial support to individuals with the capacity for activity in the labour market and to be an incentive for employment participation through an exemption limit for employment income.

Activity grant

The Directorate of Labour is authorised to pay an activity grant to those who are entitled to a partial disability pension and are actively seeking employment with the support of the Directorate. Applications are made to the Directorate of Labour.

Who is it for?

Medical and rehabilitation allowance is intended for those who are experiencing long-term or serious health problems, or a disability that is considered to have a long-term impact on their ability to be active in the labour market, and if the person:

• Is undergoing recognised treatment or rehabilitation.

• Is waiting for treatment or rehabilitation to begin.

• Is unable to participate in rehabilitation due to health problems.

• Is seeking employment after rehabilitation.

• Has exhausted their sick leave rights from their employer and payments from their trade union's sickness fund.

• Has been legally domiciled in Iceland for a continuous period of 12 months before starting to receive medical and rehabilitation allowance.

Payment period

Medical and rehabilitation allowance may be paid:

• For up to 60 months. The allowance can be extended by 24 months for individuals in a vulnerable position with complex issues who require more rehabilitation.

• While an individual is waiting to receive treatment or for rehabilitation to begin, for up to six months. The same applies if the person's health problems prevent treatment or rehabilitation from starting.

• For three months after rehabilitation ends if the person is registered as a jobseeker with the Directorate of Labour.

Service providers have an obligation to cooperate on services related to the rehabilitation of individuals.

This applies in particular to persons who find themselves between the services of rehabilitation providers and persons with multiple problems.

The service providers are:

• Social Insurance Administration

• Municipal social services

• Directorate of Labour

• Healthcare institutions

• VIRK Vocational Rehabilitation Fund

An integrated expert assessment must be carried out to determine the right to a disability pension or partial disability pension.

• Rehabilitation or recognised treatment aimed at promoting increased capacity for full or partial participation in employment must be fully exhausted before an integrated expert assessment is carried out.

• The requirement for an integrated expert assessment can be waived if it is deemed unnecessary.

The integrated expert assessment evaluates an individual's ability/capacity for activity in the labour market.

• It is individualised

• It is holistic

The integrated expert assessment is based on the ideology of the ICF classification system, the International Classification of Functioning, Disability and Health.

• Functioning is a result of the interaction between an individual's health condition and circumstances.

A working group appointed by the Ministry of Social Affairs and Labour is responsible for preparing the integrated expert assessment. The Social Insurance Administration is responsible for carrying out the assessment.

Service providers have established coordination teams to promote continuity in services and allowances for individuals who require services from more than one provider during their rehabilitation.

The service providers are:

• Social Insurance Administration

• Municipal social services

• Directorate of Labour

• Healthcare institutions

• VIRK Vocational Rehabilitation Fund

Coordination teams are regional. There are six coordination teams in the country: Reykjavík, the Capital Region, West Iceland and the Westfjords, North Iceland, East Iceland, and South Iceland and the Reykjanes Peninsula.

Each team is composed of two specialists from each service provider and one alternate. Participation in the teams is part of the respective specialists' job duties.

Team leaders at the Social Insurance Administration manage the teams' meetings and all statistics.

Role of coordination teams

To ensure that individuals who need services from more than one service provider or need to move between service providers receive a holistic approach to their rehabilitation by promoting the necessary overview of the service.

To ensure increased continuity in rehabilitation and maintenance for people who need services from more than one service provider, need to move between service providers, or when their service needs are unclear.

To specifically examine waiting times for resources and seek possible ways to reduce waiting lists in cooperation with the welfare system's service providers, highlight the need for developing new resources, and evaluate the success of existing ones.

The Social Insurance Administration operates a service portal, among other things, for the purpose of ensuring the necessary overview of the treatment that individuals receive.

The Social Insurance Administration keeps a register that states in an exhaustive manner what information about individuals is shared through the service portal.

Service providers are obliged to ensure access to the necessary data through the service portal, and representatives of coordination teams must have access to that information.

The Terms of Service for the Service Portal can be found here.

International Classification of Functioning, Disability and Health (ICF or International Classification of Functioning, Disability and Health)

• The purpose of the system is to classify and describe an individual's functional ability in interaction with their environment and circumstances.

• According to the classification system's methodology, functional ability is the result of the interaction between an individual's health and their circumstances.

• The integrated expert assessment, which will replace the current disability assessment in the existing system, is based on the ICF methodology.

• A working group appointed by the Ministry of Social Affairs and Labour was responsible for creating the integrated expert assessment used in Iceland.

You can find more information about the ICF from the National Medical Examiner here

Recordings from course - only in Icelandic:

Please note that you can select Icelandic subtitles for the videos by selecting the CC box next to the gear icon.

Medical and rehabilitation allowance

Disability

Activity grant